Department of Insurance Unveil Pay-As-You-Drive Car Insurance

Environmental Defense Fund estimated that if 30% of drivers adopt the policy, it can eliminate 55 million tons of CO2 emissions

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California’s Department of Insurance has proposed revised regulations, that will give insurance companies the ability to offer consumer coverage plans that are paid for by the mile.

According to Mr. Poizner, Commissioner, Department of Insurance-California, the revised regulations is expected to offer discounts for customers who purchased a mileage verification policy. This is likely to allow Californians to pay for miles that are actually driven and the incentive of premium discounts for not operating over a predetermined amount of miles.

Environmental Defense Fund estimated that if 30% of drivers purchase a pay-as-you-drive policy, it can eliminate 55 million tons of CO2 emissions through the year 2020. A recent Brooking Institution report estimates that if all motorists bought pay-as-you-drive policy, Driving would decline by 8% nationwide, saving about $50 billion a year in driving accidents.